Advantages Of Tenant Management

Are you in dilemma whether to handle the assets on your own or work with the property management company? However, the final decision is your choice! In priority, make sure that you understand the advantages of tenant management. One of our clients approached us in emergency since he was unable to dedicate the considerable amount of time to manage his properties. In fact, he had two properties to be looked after and did not find enough maintenance resources to handle his tenants efficiently. When he approached us with his problem, we intended to help him to get rid of mental stress. Initially, we analyzed the property and planned the style of management that would be best suitable for him. Likewise, we have also met the clients who faced tenant problems such as:

  • Running behind the tenant in case of legal issues; during which it is highly difficult for an NRI to arrange a helping hand.
  • Chasing behind the tenants for rental money.
  • In case of evicting the tenant from your property.
  • Keep an eye on the tenants who wreck your property.
  • Managing the loads of paper work

We have enumerated the benefits to be considered before deciding upon the requirement of professional tenant management.

Advantages of Professional Tenant Management

Avoid Stress

You are entitled to have a positive and stress-free mentality with the support of professional Property Management Company. Moreover, the quality tenant management will guarantee the long-term satisfaction by offering:

  • Tenant Screening
  • Assures timely repairs
  • Resolves Legal Matters

Economical Repair and Maintenance Cost

Your investment in the home country is preserved with the help of excellent maintenance and repair strategies on a timely basis. The good tenant management team will ensure the high-quality work, economical work and legal maintenance. The owner can make a significant savings if opts to hire the professional tenant management company. Moreover, the intelligent supervision of the repair and maintenance work is highly essential for the NRI’s property management.

Resolve Legal Issues

The legal issues has been the prominent concern to track when the owner is residing far from the home country. Some of the legal issues demands certain precautionary measures:

  • Draft a perfect lease including all the necessary terms and conditions.
  • Regular Inspection of the property.
  • Take care of Licenses and Permits.
  • Regular Rent Collections.
  • Monitoring the Reconciling Fees.

Tenant management will take care of paper work correctly and face the legal issues that might arise anytime. It is extremely difficult to handle such legal issues alone if you do not possess any such prior experience.

Tax Assistance

The tenant management provides ultimate benefits when tax issue is considered. You are entitled to receive the assistance regarding the following:

  • Deductions upon which you can claim.
  • Organize the required forms.
  • Preparation of documents to make the claims.

Ultimately, the tenant management will take the responsibility to update you with the tax related issues in turn helping you to be safe and legal.

Excellent Quality Tenant Relationships

In the first place, the conversation with the tenant is ensured to be professional so that the owner and tenant relationship tends to be comfortable. The tenant management promises to help you in the following ways:

  • Ensures the on time rent collection.
  • Safeguards the delayed payment issues.
  • Prompts not to talk about reduction of rental rate.
  • Secured environment is maintained for both the tenants and owners.

With the assistance from tenant management, the worst-case rental scenarios can be avoided to a maximum extent. In addition, the owner will have the accessibility to good number of trustworthy clients, legal consultants, and contractors, which are difficult to attain when tried individually. Ultimately, it becomes extremely easy to meet the tenant’s requirements accompanied with friendly cooperation.

Long Term Tenant Retention

If you meet a tenant who wishes to stay only for a short period, then you will certainly face a number of problems before a new client approaches:

  • Requirement of complete property cleaning.
  • Might have to change the locks.
  • Might have to go for re-painting of walls.
  • Small repair works might have to be accomplished.

As a whole, the effort spent in marketing, screening, and settling with another trustworthy client is considerably high as well as time consuming. In order to avoid this expensive process, the current tenants have to be looked after happily and well cared. This ensures the long-term retention of tenants. Therefore, the property management companies will ensure that the clients stay for a relatively longer duration and promises to maintain the happy environment.

Ensures Short Vacant Period

Whenever your property tends to be vacated, the time period it takes for the new client to arrive must be as short as possible. In addition, the tenant must be comfortable to manage in the long run. Our clients experiences this as one of the major problems and ask us to find the reliable clients quickly. Our property management team will implement the following strategies to attract the tenants.

  • We prepare your property for rent. The property manager will analyze and suggest the improvements that will maximize the revenue.
  • After careful analysis, the accurate rental rate is determined. If not estimated properly, you might end up waiting for a high rate or losing money for a low rate! The professional property management team has the access to rental rate tools, idea about the local market, and comparative analysis report from the recently sold properties.
  • Strategic advertisement is deployed in order to get the pool of customers in a short period.

However, from the rich experience in handling the varieties of clients, the deal is closed with an appropriate client and the profit is ensured.

We at Propadis offer the comprehensive and hassle free property management solutions to all our clients. Make sure to connect with us and explore how the owners can find a suitable tenant match. Reach us today and discover the best resources to manage your tenants. We respect your love for the property in home country and promise to bring you the maximum benefits from our planned services.

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Real Estate Market in India after RERA

The deployment of RERA profoundly aims in reshaping the real estate sector with an organized and regulated system. As per the statistical analysis, the 30% of the transactions takes place unnoticed and unaccounted. It is good to know that new set of regulations promises to induce greater transparency in the transactions. At Propadis, we have directly seen the problems faced by the property buyers in the industry. Many clients of us have come to us after facing bad experience that is sad to hear. The primary problems are:

  • The legal procedures were extremely ambiguous.
  • The recourse methodologies were not kept transparent.
  • Lack of organization of homebuyers.
  • Overloading legal procedures.

Key Reasons for Cost Rise

It is anticipated that the expenditure on real estate project development will increase mainly because of the following reasons.

  • The developers must maintain separate account where 70% cash flow is enabled.
  • Sale of open parking spaces is restricted.
  • Common areas should be transferred to housing societies.
  • Webpage maintenance, quarterly filings, and monthly updates incurred extra costs.

The three major areas in which real estate industry is facing the obstacles are:

Slow ProductionAfter the deployment of RERAthe new properties are highly difficult to be launched which has ultimately slowed down the production department.

Lesser Purchaser InterestDue to the uncertainty and lack of accurate information, the demand for purchase has come down.

Lowered PricesThe inventory has been clogged with older projects. As a result, it has to be cleared within the deadline at the lower prices.

Financial Pressure on End Customers

As per the regulations of RERA, the projects must be completed within the scheduled time failing which the builders are liable to penalties. In turn, this time pressure is shifted to the contractors for strict time evaluation during the work progress. As a result, the construction rates increase due to the high demand of quality and speed. Ultimately, the increased prices strike the end customers. On the positive side, RERA promises the overall ownership cost tends to reduce in spite of all these fluctuations.

 

Major Impacts on Real Estate Market

Clear Price QuotationThe property developers are supposed to make the transparent quotation. The properties can no more be sold on the built-up area instead the price must be quoted for the carpet area. In fact, the carpet area accounts for the actual internal area where the person tends to live. Ultimately, this improves the transparency to the customers and let him know the actual cost per square feet. You are entitled to get the standardized platform that assists in better comparison and analysis before buying.

Eradication of Parking Charge: Generally, the parking charges are accounted separately which ranges from two lakhs INR to six lakhs INR based on the property. After the deployment of RERA, it has been made mandatory to include the parking charges within the sales agreement.

Revised Agent-Customer Relationship: Most of the real estate agents are not well organized and regulated. As per the act, real estate agents must register themselves under the competent authority. This is mainly to avoid the cheating of innocent customers by such unregulated real estate agents. Moreover, the nature of relationship between the agent and the end customer must go according to the standard definitions.

No More Delay: Now, the project completion period will not pose major problems to the end customers. As per the new rule, the developer is responsible for any delay in the project completion status and strictly entitled to monetary penalty. On the other hand, he is liable to the imprisonment of 3 years. Additionally, if the buyer is not satisfied with the work then he has the freedom to claim for a refund in the period of 15 days before buying.

Transparent Legal Documentation: The builders or developers are required to make the transparent and complete disclosure to the end customers. The disclosures pertaining to the following must be made clear with the buyer.

  • Title Report of their land.
  • Presence of any encumbrance issue.
  • Usage of Floor Space Index
  • Usage of Construction Technology
  • Layout Design Standards.

Property Registration: Initially, the real estate broker must register all the properties under the RERA before making any sales. However, the property must meet all the conditions to be eligible for registration. If any real estate broker sells the unregistered properties, he is entitled to the penalties. As a result, it avoids the dishonest promoters from moving their illegal properties to sale.

Small Properties Regulation: As per the RERA, the properties that are above 500 square feet or area having eight flats should also follow the new regulation act. Consequently, this rule invites all the low-cost housing projects to follow the legalities.

Construction DefectsIn most of the cases, the structural defects are not considered as the builder’s responsibility during the construction. As per the RERA, the builders are liable to all kind of structural defects for a period of 5 years after construction. In addition, the land titles must be issued legally in order to prevent the buyer from running into troubles during legal issues.

Most prominently, it is been announced that the state level regulatory department will be set up in order to deal with the real estate disputes and issues at the state level. Here, the end consumer grievances will be tackled in the first place. As a whole, both the customers and builders will receive the advantages of financial transparency. The real estate agency is heading to function transparently and tends to be consumer centric. The new act demands the adaption to these changes by the real estate sector that guarantees the promising future.

For next few quarters, the real estate industry is unlikely to produce new property launches since the builders are occupied with the plethora of ongoing projects. All the builders will certainly face new challenges in complying with new rules of RERA and occupied in accomplishing the inventory held projects strictly within deadline. However, the small-scale and poorly organized industry players will no longer be able to sustain.

Why property management is important for NRI?

When people leave their valuable property and reside away from their home country, the challenges they are supposed to face are right around the corner. At Propadis, we have helped a plethora of NRIs in maintaining and managing their property by building a strong layer of trust with them. We have come across a wide range of clients who had faced serious problems in the two major issues namely: 

  • Illegal Possession of a property 
  • Land Grabbing 

With our experience in handling such issues, we would strongly suggest that engaging with a reliable property manager is highly essential. Recently, a man residing in United States approached us by stating, “My tenant is not vacating the house and seems too stubborn for any kind of warnings. What further step can I take to solve this problem?” We could understand the worry and fear through his voice! The person residing in the NRI’s property started posing critical problems such as: 

  • Delayed in paying the rent. 
  • Ignoring and not attending the owner’s call. 
  • Renovating the house without prior permission.  
  • Hiding owner’s nameplate. 
  • Gives false reasons when asked to vacate.  
  • Extra members occupied the house without permission.   

The owner is unable to come back and solve the issue personally because of his work life restrictions. We took it as a challenge and solved his problem through legal steps. It would have taken more time and higher cost to solve the problem by our client alone. Since we are here and know how to tackle the issue, could manage to arrive at the solution without any complications. As a result, the secure property management is required by NRIs to safeguard their property.  Keeping this case in mind, we would like to explain you why the property management is significant by NRIs and help you to take the right measures at the right time.  

Regular Property Visit: In the first place, you can never rely on anybody blindly! Your friends or relatives might not be able to dedicate a consistent time to help you in their busy life schedule. Sometimes, you might need someone who is trustworthy to make regular visits to your property location and update the status of the same. You will be waiting to know that the property is well maintained and is free from danger/threats. In such a situation, the property management companies can handle the situation legally and ensure the safety of your property.  

Find a new reliable tenant: If you want to find a new tenant for your property, then we will help you to get through the processes legally. In between the contract, if tenant turns out to be cheating against the contract, we will ensure to free your property from such dangerous hands. In fact, managing the tenant by staying outside country is highly difficult and hence getting in touch with a helping hand is recommended.    

Regular Rental Payment: Another common reason why the property management must be opted by NRIs is regular rental payment. As per our experience, NRI will not have exact idea about the rent rate at which they should quote their property to the customers. If you reach the property managers, they will help you to set up an initial rent payment and arrange the regular rent collection. If at all any disputes are found, the tenant is made to abandon your property immediately. In addition, the rent is increased or decreased as per the law and is responsible for rent adjustment.  

Management of Repair Works: There is a high chance of NRI being cheated during the maintenance and repair works. He/she might be asked to pay more by creating the fake service charges and it certainly cannot be tracked from a far place. We at Propadis have come across such issues and handled the property maintenance – repair at the economical rates. Additionally, we maintain the quality of such services. This is the reason why you need property management when maintenance and repair services are required.  

Tax Payment Assistance: Don’t you think it is essential to have someone whom you could trust and depend upon for providing tax payment assistance? You might be busy with the routine work schedule and there is a major tendency to forget about certain property management tasks such as tax payment. In order to avoid such problems, getting the assistance regarding tax filing for your property is necessary and hence property management seems to be significant.  

Budget Management: If you have a budget limit in your mind for property management, then it is mandatory to have a tracking sheet. Using the tracking sheet, the records related to monetary transactions, maintenance and repair expenses, leases, and other major essentials can be checked. This will certainly eradicate the confusions and help you to be within the budget limit. Thus, property management is required by the NRI to manage the budget appropriately.         

Most prominently, the NRI property owners requires the responsible and reliable support for managing their asset. In general, property management enhances the value of your asset and beneficially helps during the time of selling. Being far from your property location, you demand the continuous business flow and regular income without any kind of problems. Property management can end up in obtaining the utmost satisfaction to the NRI regarding monetary returns as well as asset maintenance. It forms the best solution to eradicate the mental stress of NRIs due to the occurrences of any threats upon their property. Since, they cannot keep travelling back and forth to India; property management holds exceptional support to NRIs.   

At Propadis, our experienced property managers will come to your rescue and we will do it all for you! We understand the fact of having an asset in the native country is a dream of every NRI.  We have considered it as our duty to safeguard your asset and take complete care of it from the time of commitment. We help you in building a strong relationship to get connected with the motherland. We look forward to secure your valuable investment.